What actions must a Beard Papas franchisee take to be eligible for reimbursement of trademark defense costs?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall indemnify, defend, and hold Franchisee and Franchisee's officers, directors, shareholders, members, owners, partners, agents, representatives, independent contractors, employees, assigns and successors (the "Franchisee Indemnified Parties") harmless from all losses, expenses, claims, causes of action, lawsuits, liabilities, taxes, costs, demands, proceedings, investigations, hearings, and/or damages solely arising out of, or solely relating to, Franchisor's gross negligence in the operation of Franchisee's Beard Papa's Shop that was the direct cause of any such loss, expense, liability or damage provided Franchisee immediately notifies Franchisor of such claim, cause of action, lawsuit, demand, proceeding, investigation or hearing, and Franchisor shall pay all of the Franchisee Indemnified Parties' reasonable
costs, fees and expenses of defending any such claim, cause of action, lawsuit, demand, proceeding, investigation, and/or hearing brought against any of the Franchisee Indemnified Parties or any such claim, cause of action, lawsuit, demand, proceeding, investigation, and/or hearing in which any of the Franchisee Indemnified Parties is named as a party, including, without limitation, reasonable accountant fees, attorney fees, and expert witness fees, court costs, deposition fees, travel expenses and other litigation expenses provided Franchisee immediately notifies Franchisor of such claim, cause of action, lawsuit, demand, proceeding, investigation or hearing. Franchisor agrees that the terms of this Article 10.C. shall survive the termination, expiration or Transfer of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
Based on the 2025 Beard Papas Franchise Disclosure Document, the document outlines the conditions under which Beard Papas as the Franchisor will indemnify the franchisee. Specifically, Beard Papas will indemnify, defend, and hold the franchisee harmless from losses, expenses, claims, lawsuits, liabilities, taxes, costs, demands, proceedings, investigations, hearings, and/or damages.
However, this indemnification is limited to situations solely arising out of, or solely relating to, Beard Papas's gross negligence in the operation of the franchisee's Beard Papa's Shop. Furthermore, this gross negligence must be the direct cause of the loss, expense, liability, or damage.
To be eligible for indemnification, the franchisee must immediately notify Beard Papas of any such claim, cause of action, lawsuit, demand, proceeding, investigation, or hearing. If these conditions are met, Beard Papas will cover the franchisee's reasonable costs, fees, and expenses of defending against such claims, including accountant fees, attorney fees, expert witness fees, court costs, deposition fees, travel expenses, and other litigation expenses. This obligation of Beard Papas survives the termination, expiration, or transfer of the franchise agreement.